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Returning Member
posted Mar 21, 2021 12:12:04 PM

I typed in income for 1099-NEC. Why does it say $0 under income?

I made little $ due to Covid, but recorded my income for 1099-NEC. IF my expenses exceeded my self employed income, would it say $0?

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1 Replies
Level 15
Mar 21, 2021 12:17:17 PM

Exactly where does it say 0?  For the Net Profit or loss on Schedule C?  Did the 1099NEC show up as income on Schedule C or on the 1040 as Other Income? 

 

If you are not showing a loss on Schedule C.  

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

 

Or you checked the box on 32b saying Some Investment is Not at Risk.

 

If you have money not at risk you can not take a loss on schedule C. If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business.  People usually check the wrong box.